According to PANews, the Kyrgyzstan Ministry of Finance has announced the details of its gold-backed stablecoin, USDKG, which will be strictly pegged to the physical gold reserves of the national treasury. Each USDKG token corresponds to a specific amount of gold, with reserves overseen by the Kyrgyz Republic's national depository and subject to regular audits to ensure transparency. The government aims to enhance financial inclusion and reduce transaction costs through blockchain technology while providing investors with a stable digital asset.
USDKG is expected to launch on blockchain platforms in the coming months, with ongoing collaboration with commercial banks and other institutions to facilitate system integration. The country hopes this gold-backed model will serve as a blueprint for digital economic innovation in Central Asia. Kyrgyzstan has been actively pursuing financial modernization reforms in recent years, ranking 58th globally in gold reserves in 2024, according to the World Gold Council.
Earlier reports indicated that Kyrgyzstan plans to introduce the USDKG stablecoin, backed by national gold reserves, in the third quarter.